European Semiconductor Market-Industry Analysis and Forecast 2030: Type, End-User & Region

The European Semiconductor Market was valued at USD 53.47 Billion in 2023, and the total revenue is expected to grow at a CAGR of 8.93% from 2024 to 2030, reaching nearly USD 97.30 Billion by 2030.
European Semiconductor Market Overview
The semiconductor industry refers to the production of materials and devices, typically made from silicon, that control and manage electrical current in electronic devices. These devices are the backbone of modern technology, enabling everything from basic consumer electronics to advanced applications in AI, 5G, automotive, and IoT. The European semiconductor industry is a critical sector within the global electronics and technology supply chain, encompassing the design, manufacturing, and distribution of semiconductors, which are essential components for a wide range of electronic devices. Semiconductors enable key technologies such as smartphones, computers, automotive systems, industrial machinery, and telecommunications.

• In October 2022, STMicroelectronics announced plans to build a USD 771.93 million silicon carbide wafer plant in Italy. This facility is part of an EU initiative to localize chip production and meet the growing demand for automotive and industrial applications driven by electrification in the European semiconductor market.

• In June 2022, BASF revealed its investment in a commercial-scale battery recycling plant in Schwarzheide, Germany, aimed at enhancing its cathode active materials (CAM) production. The plant, set to begin operations in early 2024, will create 30 new jobs and support the growing demand for lithium-ion batteries used in semiconductor devices.

To know about the Research Methodology:-Request Free Sample Report
European Semiconductor Market Dynamics
Actions Supporting the Growth of Semiconductor Production in Europe

EU Chips Act, The EU Chips Act, adopted by the European Council on July 25, 2023, serves as a major catalyst for the growth and development of the European Semiconductor market. This groundbreaking legislation introduces several initiatives, such as the "Chips for Europe" program, which is focused on advancing innovative semiconductor technologies and securing a stable supply by attracting new investments. The program aims to mobilize up to USD 45.47 billion in funding, including USD 3.49 billion from the European Union’s budget, to bolster Europe’s semiconductor capabilities.

A central goal of the EU Chips Act is to mitigate the ongoing microchip shortage and reduce Europe's dependence on external suppliers, contributing to the continent’s technological sovereignty. With an ambitious target to capture at least 20% of the global semiconductor market by 2030 up from 10% in 2022 the act is poised to strengthen Europe’s industrial base and create new high-quality jobs, ultimately unlocking future business opportunities. By supporting semiconductor innovation and local manufacturing, the EU Chips Act is paving the way for Central Europe to become a global hub for semiconductor production, shortening supply chains, minimizing lead times, and securing the availability of critical components. This strategic initiative is expected to drive significant growth in the European Semiconductor market, ensuring a more resilient and self-sufficient future for the region.



Automotive Sector Growth and Its Impact on the European Semiconductor Industry

The automotive industry’s shift towards electric vehicles (EVs) and autonomous driving is another major driver impacting the European Semiconductor market. As Europe leads the charge in adopting green mobility solutions, the need for high-performance semiconductors has risen dramatically. EVs rely heavily on specialized chips for power management, battery efficiency, and advanced driver-assistance systems (ADAS), making the automotive sector a critical demand driver. The European Semiconductor industry has been pivotal in supporting this transformation, supplying chips that are integral to the operation of electric powertrains, charging infrastructure, and smart vehicle features. This growing reliance on semiconductors within the automotive industry is accelerating the European Semiconductor market growth by diversifying the applications of chips beyond traditional consumer electronics. With governments and companies investing in green technologies and automotive innovations, the European Semiconductor market is poised for sustained growth, driven by the expansion of the electric and autonomous vehicle markets.
European Semiconductor Market Segment Analysis
By Type, the European semiconductor market segment analysis reveals that Integrated Circuits (ICs) dominate the market due to their versatility and widespread applications across industries, particularly in advanced computing and telecommunications. Discrete semiconductors and power semiconductors are seeing significant growth driven by their critical role in energy efficiency and power management, particularly in electric vehicles and renewable energy systems. Additionally, optoelectronics and sensors are gaining traction in applications such as autonomous driving, IoT devices, and healthcare, marking them as rapidly expanding segments with a strong market reach.

By Application, the major segments include consumer electronics and automotive, both of which significantly influence the European semiconductor market growth. The demand for semiconductors in consumer electronics is driven by advancements in smartphones, wearable devices, and smart home technologies. Meanwhile, the automotive sector is a key growth driver due to the increasing adoption of electric vehicles and autonomous driving technologies. Other applications, such as industrial automation, telecommunications, and healthcare, are also increasing the market's scope, with telecommunications benefiting from the rapid rollout of 5G infrastructure across Europe.
European Semiconductor Market Regional Analysis
Germany stands as a key player in the European semiconductor market, driven by its robust automotive and industrial sectors. The country’s focus on advancing electric vehicles (EVs) and Industry 4.0 initiatives has fueled demand for cutting-edge semiconductor technologies such as power semiconductors and integrated circuits (ICs). With its position as a leading hub for automotive innovation, Germany is capitalizing on semiconductor advancements to strengthen its global competitiveness. Investments in research and development, coupled with partnerships between government and private players, are solidifying Germany’s status as a powerhouse in the European semiconductor industry.

Hungary is emerging as a leader in the European semiconductor market, with forecasted revenue of 2.5 billion U.S. dollars. The country’s strategic focus on attracting foreign direct investment and fostering local semiconductor manufacturing has positioned it at the forefront of the market. Hungary’s strong industrial base and its role as a critical supplier of semiconductors for consumer electronics and automotive applications are key drivers of its market growth. This regional dominance reflects Hungary’s ability to bridge technological gaps and meet the growing demand for semiconductors across Europe.



France plays a pivotal role in the European semiconductor industry, benefiting from its initiatives to bolster domestic semiconductor manufacturing and R&D. With its commitment to the EU Chips Act, France aims to expand its capabilities in optoelectronics and sensor technologies, supporting its growing healthcare and energy sectors. Additionally, France’s focus on developing green energy solutions has increased demand for power semiconductors, making it a vital market contributor. Collaborative efforts with other EU nations are helping France align with Europe’s goal of achieving 20% of the global semiconductor market by 2030.

While Serbia trails other countries in terms of revenue, with a forecasted 88.4 million U.S. dollars, its potential in the European semiconductor market cannot be overlooked. The country is gradually strengthening its presence by focusing on niche semiconductor applications, particularly in telecommunications and industrial automation. Serbia’s alignment with regional initiatives and its growing collaboration with EU nations are helping to set the stage for gradual market growth and integration into the larger European semiconductor ecosystem.

European Semiconductor Market Competitive Landscape

The European semiconductor market is characterized by intense market competitiveness, with Infineon Technologies and STMicroelectronics standing out as two major players. Both companies command a significant share of the market and are pivotal in driving the region’s semiconductor advancements. Their rivalry is fueled by their focus on innovation, market growth, and leadership in strategic sectors like automotive, industrial applications, and consumer electronics.

 Infineon Technologies, headquartered in Germany, has established itself as a leader in power semiconductors, leveraging its expertise to dominate the automotive segment, especially with the rise of electric vehicles (EVs). The company’s focus on energy-efficient solutions has strengthened its foothold in Europe and beyond, with robust revenue contributions from the European market. Infineon’s global growth strategy includes investments in high-tech manufacturing facilities and partnerships with key automakers, enabling it to maintain its competitive edge against rivals like STMicroelectronics.

 STMicroelectronics, based in Switzerland, excels in integrated circuits (ICs) and sensor technologies, with a strong presence in the industrial and healthcare sectors. The company has prioritized the development of advanced semiconductors to cater to Europe’s growing demand for IoT devices and automation. Its commitment to innovation and localization, including the construction of a USD 771.93 million silicon carbide wafer plant in Italy, showcases its ambition to expand its European market share.

The rivalry between these two giants is marked by a race to secure market competitiveness through strategic investments, R&D initiatives, and partnerships. While Infineon leads in automotive and renewable energy applications, STMicroelectronics has a competitive edge in diversified applications across healthcare and consumer electronics. Both companies are vital to achieving Europe’s goal of capturing 20% of the global semiconductor market by 2030, ensuring a dynamic and competitive European semiconductor industry.
European Semiconductor Market Scope: Inquire Before Buying



European Semiconductor Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 53.47 Bn.


Forecast Period 2024 to 2030 CAGR:
8.93%
Market Size in 2030:
USD 97.30 Bn.


 Segments Covered:
by Type
Integrated Circuits (ICs)
Discrete Semiconductors
Optoelectronics
Sensors
Power Semiconductors


by Application
Consumer Electronics
Automotive
Industrial
Telecommunications
Healthcare
Energy


by End User industry
Consumer Electronics
Automotive
Industrial
Telecommunications
Healthcare
Energy
Others



European Semiconductor Market, by region
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
European Semiconductor Market, Key Players
1. Infineon Technologies AG (Germany)
2. STMicroelectronics N.V. (Switzerland/France)
3. NXP Semiconductors (Netherlands)
4. ASML Holding N.V. (Netherlands)
5. Dialog Semiconductor (UK/Germany)
6. Bosch Group (Germany)
7. Soitec (France)
8. GlobalFoundries (Germany - Dresden Fab)
9. ams-OSRAM AG (Austria)
10. ARM Holdings (UK)
11. Melexis N.V. (Belgium)
12. X-FAB Silicon Foundries (France)
13. Tower Semiconductor (Germany)
14. CEA-Leti (France - Research-focused)
15. Nordic Semiconductor ASA (Norway)

Frequently Asked Questions:
1. Who are the key players in the European Semiconductor Market?
Ans: ASML Holding, STMicroelectronics, Infineon Technologies, NXP Semiconductors, Renesas Electronics, Dialog Semiconductor, Nordic Semiconductor, ams OSRAM and Other Major Players.

2. What would be the forecast period in the European Semiconductor Market research report?
Ans: The forecast period in the European Semiconductor Market research report is 2023-2030.